AUSTRALIAN WHEAT SALE TO CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01495R000600150036-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 1
• Document Creation Date: December 19, 2016
• Document Release Date: December 22, 2005
• Sequence Number: 36
• Publication Date: September 27, 1972
• Content Type: MF

C'(NIFHPr TIAU
Approved For Release 2006/01/17 : C A-RDP80B01495R00060015003
27 September 1972
MEMORANDUM FOR: Deputy Director for Intelligence
1. the Australian Wheat Board
has announced the signing of a contract with the PRC for 1
million tons of wheat to be delivered in 1973. During 1971
and 1972, China refused to purchase Australian wheat because
of the Australian position on diplomatic recognition of the
PRC. The turnabout in the Chinese position apparently re-
flects the PRC judgment that Canada -- China's preferred
source of grain imports -- may be unable to supply more than
3 million tons of wheat next year and that additional amounts
will be necessary to meet Chinese requirements. USDA esti-
mates that the US would be unable to fulfill a Chinese contract
of this magnitude before May of 1973 and then only at the
expense of other US customers. This is the season for the
annual Chinese negotiations for imports in the following year
and the PRC has apparently turned to Australia for a large
part of its 1973 needs. The current status of PRC grain
imports is shown below:
PRC Grain Import Contracts
(Thousand Metric Tons)
Exporting Country
1972
1973
Canada
3,950
750
US
408
Australia
0
1,000
Unspecified
150
50
Total
4,508
1,800
2. We speculate that China is currently negotiating
with Canada for a 1973 contract for around 3 million tons.
At this point, US chances for becoming a regular exporter of
large quantities of grain to the PRC appear to be small.
Approved For Release 2006401/17 : CIA-RDPI
Director
Economic Research
26x1
CONFIDENTIAL